Gold Results in Shinyanga

RNS Number : 7259H

Obtala Resources PLC

10 November 2008

 



10 November 2008

OBTALA RESOURCES PLC ('Obtala' or the 'Company')

Gold Results in Shinyanga

The Board of Obtala Resources, the AIM quoted mineral exploration and development company is pleased to provide the market with an update of the results from the soil sampling conducted over the Shinyanga licence in Northern Tanzania, Lake Victoria Goldfields. 

Highlights

• Two Geochemical anomalies identified
  
• Gold in soil up to 658 parts per billion (equivalent to 0.658 g/t)
  
• 1,439 samples collected
  
• Geophysical survey planned based on these results
  
• Anomalies occur 2km west from active artisanal bedrock gold mining

A total of 1,439 samples have been collected from two phases of sampling in June and August 20-08, with values over 600ppb (parts per billion (ppb)) gold being reported from some soil samples. This represents a new zone of mineralisation that has not been previously tested by either trenching or drilling.  

Sampling has been conducted by Obtala's geologists with initial sampling over the licence completed at sample interval spacing of 500m X 100m (section line spacing x interval along section line). This led to the identification of two geochemical anomalies, one of which reported a high of 630ppb gold in soils (refer to the Interim management Statement, 9th September 2008). 

Project	Work Status	Soil	Stream	Rock	Total
Shinyanga 1st Phase	Complete	645	15	14	674
Shinyanga 2nd Phase	Complete	756	0	9	765
Shinyanga In-fill	Planning
Total Samples Taken		1,401	15	23	1,439

Table 1. Total number of samples collected to date

Additional sampling was conducted at 100m X 50m over the two anomalies identified, and which are referred to as the North and South Anomaly. Results from soil samples taken immediately over the identified anomalies returned the following gold results:

Gold in Soil (ppb)	No of samples
>100	9
51-100	11
>20-50	47

From the data collected over the entire licence area 72% of the samples returned are less than or equal to 5ppb and 87% of the total number of samples are less than 10ppb gold, indicating background values over the licence area less than 10ppb gold.

The South Anomaly is defined by a 1km long northeast trend of gold in soil values greater than 10ppb with highs to 628ppb.

The North Anomaly is more diffuse and less well defined, covering an area in excess of 0.7km2 with values up to 179ppb gold. To the southwest of the main anomalous zone gold in soil values of 249ppb and 658ppb were also returned during the sampling programme.

Click to view maps of the Shinyanga South and North Anomaly

http://www.rns-pdf.londonstockexchange.com/rns/7259H_-2008-11-7.pdf

Geological mapping has been completed over the licence. Although outcrop is less well defined in the area it is determined that the geochemical anomalies lie with the greenstone units, comprising metasediments and occasional outcrops of banded iron formation (BIF), adjacent to the contact with a medium grained biotite-rich granite. 

95% of the samples from the 2nd phase sampling returned copper values <50ppm (parts per million (ppm)). However 9 samples returned anomalous copper values greater than 100ppm, up to 145ppm (0.0145%), which are clustered together in the southeast corner of the South Anomaly. The copper anomaly occurs together with low level gold values and adjacent to one sample that returned 121ppb gold, and represents an area for additional work as the anomaly for both gold and copper remains open to the south. 

A ground magnetic survey is planned to commence in the 2nd week of November 2008 over the two geochemical anomalies to provide additional data to assist in the interpretation of the sub-cropping structure and lithological contacts.

All samples were submitted to ALS Chemex laboratories in Mwanza, Tanzania. ALS Chemex has preparation facilities in Mwanza with the prepared samples being dispatched to their analytical facility in Vancouver, Canada for analysis. All samples are being analyzed for gold using the Au-ICP21 method (fire assay with ICP-AES). The samples collected during the 2nd phase programme over the two previously identified geochemical anomalies were also analysed for multi-element content using the ME-ICP41 method (aqua regia digestion with a conventional ICP-AES analysis).

The Shinyanga licence covers an area of 68.56km2 and is located 125km south of Mwanza, Tanzania's 3rd largest city situated on the shores of Lake Victoria, in close proximity to the Mwadui Diamond Mine. The town of Shinyanga lies 14km south of the licence area and is the administrative centre for the Shinyanga District, serviced by road, rail and air. 

Frank Scolaro, Chairman of Obtala, commented that 'Shinyanga is positioned ideally in a world-class gold producing region, with operations including Barrick and Anglo-Ashanti being very active locally. Our strategy remains the same, the realisation of shareholder value through strategic associations and we remain confident that this will be achieved throughout our portfolio of licences. Obtala remains fully funded to continue its exploration programme over all its licence areas for 2009 and thereafter. I am confident that further exploration work will deliver additional encouraging results.

I am delighted with the progress and commitment that the local Tanzanian geologists and management have delivered, and am confident that the results of their strong and decisive work will deliver realisable value in the future to our shareholders.' 

Contact:

Simon Rollason - Managing Director Frank Scolaro - Chairman www.obtalaresources.co.uk	[phone]
Obtala Resources plc
Ray Zimmerman/Jonathan Evans	[phone]
Zimmerman Adams International Ltd - Nominated Adviser and Broker

 

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